A source with Egypt’s New and Renewable Energy Authority (NREA) stated that the authority will partner with Orascom Construction, Franc’s GD France, and Japan’s Toyota to establish a wind farm with a capacity of 250MW of electricity in the Gulf of Suez, reported Al Mal News.

The project is sponsored by the Egyptian Ministry of Finance, with the companies in the last stages of finalizing the $250m funding required to complete the project. The Central Bank of Egypt (CBE) has issued a $630m letter of guarantee to cover the required investments and the operating cost for six months.

The project comes under the Egyptian’s Ministry of Electricity and Renewable Energy push to engage private investor with the country’s energy sector. Thus, investors will provide necessary funding and the state will sign a 25-year power purchasing agreement. The wind farm will be executed according to a build, own, operate Model (BOO) contract. Furthermore, Egypt will purchase the energy at a rate of around $0.04068 per kWh.